After tough year, big dreams for financial giant
Woori Financial Group represents the history of Korea’s banking industry, especially the last decade of ups and downs.It was created in 2001 as Korea’s first financial holding company in the aftermath of the 1997-98 Asian financial crisis. But its actual history is much longer and could be longest among those of local financial companies. Its flagship unit, Woori Bank, started in 1899 as Daehancheonil Bank, the first bank in Korean history.
Daehancheonil Bank was established with funds from Emperor Gojong and it was later renamed Commercial Bank of Korea. It and its rival Hanil Bank, which merged in 1998, were among the nation’s top five banks directly before the Asian financial crisis.
Lee Pal-seung (65)
The financial group expanded its business scope, taking over LG Investment & Securities Co., a major brokerage house, in 2004, Hanmi Capital in 2007 and LIG Life Insurance last year. Their names are now Woori Investment & Securities, Woori Financial and Woori AVIVA Life Insurance, respectively.
Accordingly, Woori Financial Group, one of the nation’s top three financial companies with total assets of 291 trillion won ($245.5 billion) as of the end of 2008, now runs not only Woori Bank, which accounts for nearly 80 percent of the group’s assets, but also two regional banks, a securities firm, an asset management company, a life insurer and a slew of others.
Last year was extremely tough for Woori Financial Group and its rivals as the global financial crisis, which was triggered by sub-prime mortgage defaults in the United States, hit Korean markets.
Woori Financial Group’s annual net profit tumbled to 454.5 billion won last year from 1.9 trillion won in 2007, as it incurred a net loss of 664.8 billion won in the fourth quarter. However, it returned to a quarterly net profit in the first and second quarters of this year.
Lee Chong-hwi (60)
Executives of Woori Bank, the flagship unit of Woori Financial Group, celebrate the bank’s 110th anniversary early this year. Provided by the bank
Seo Young-soo, an analyst at Kiwoom Securities, said Woori Financial Group is one of the targets of privatization, which the Lee Myung-bak administration has been promoting.
“The government-led privatization project would buoy its share price because privatization will improve its governance structure,” Seo said.
Currently, the state-run Korea Deposit Insurance Corp. is the biggest shareholder in the financial group, with a 73-percent stake. The group is now listed on the New York Stock exchange and the Korea Exchange.
The current top managers at Woori Financial Group are from Commercial Bank of Korea and Hanil Bank.
Lee Pal-seung, chairman & chief executive officer of Woori Financial Group, joined Hanil Bank in 1967 and steadily developed his career in the bank. He once served as CEO of Woori Securities, which merged with LG Investment & Securities into the current Woori Investment & Securities, after the financial group was launched. He also has the distinction of serving as the representative director of Seoul Philharmonic Orchestra in 2005, when President Lee was Seoul’s mayor.
Lee Chong-hwi, president and CEO of Woori Bank is also from Hanil Bank. He joined the bank in 1970 and served as chief vice president before taking up his current position.
While Woori Bank, headquartered in Seoul, has the nation’s largest branch network, comprising 440 branches in Seoul, 460 branches in the rest of Korea, and 18 branches overseas, the heads of Woori Financial Group’s two regional banking units are from Commercial Bank of Korea.
Song Ki-jin, chairman of the board and CEO of Kwangju Bank, headquartered in Gwangju, joined Commercial Bank of Korea in 1971. He was the director of the small and medium enterprise headquarters at Woori Bank before taking the current position.
Moon Dong-sung, CEO of Kyongnam Bank, headquartered in Masan city, South Gyeongsang, joined Commercial Bank of Korea in 1976. He directed the corporate customer headquarters at Woori Bank between 2004 and 2007.
As for Hwang Sung-ho, president & CEO of Woori Investment & Securities, he came from outside Woori Bank. He used to work at foreign financial service companies, including the local and foreign subsidiaries of Citibank and Prudential Corporation Asia. Before joining Woori Financial Group in May 2009, he served as CEO of PCA Investment Trust Management Co.
Seon Hwan-kyu is representative director and CEO of Woori AVIVA Life Investment, which was formerly LIG Life Insurance. It is now a joint venture with Woori Financial Group and AVIVA plc, Britain’s largest insurance organization. Seon is also from Commercial Bank of Korea.
Among other top managers are Lee Byung-Jae, president and CEO of Woori Financial, a company specializing in lease and installment credit, and Yoon Dong, president and CEO of Woori Finance Information System, an information technology infrastructure unit.
Hur Deock-shin, representative director of Woori F&I, a unit for the management and disposition of distressed assets held by the Group’s subsidiaries, and Lee In-young, president and CEO of Woori Private Equity, which manages private equity funds, are experts in corporate banking.
*“Faces inside Korea’s conglomerates,” a regular weekly series about key figures in the nation’s major companies, will also feature major figures within Korea’s large financial groups.
By Moon So-young [symoon@joongang.co.kr]
with the Korea JoongAng Daily
To write comments, please log in to one of the accounts.
Standards Board Policy (0/250자)